Lossless

What Lossless does

Lossless, legally Digital Assets Security Solutions OÜ, is a Tallinn, Estonia-based Web3 security firm founded in 2020 that provides blockchain exploit monitoring, prevention, and mitigation infrastructure for DeFi projects and token issuers. Its core technology is the LERC-20 token standard, a proprietary extension of ERC-20 that adds security hooks routing transfers through a Lossless Controller, plus the four-party Hack Mitigation Protocol in which Finders (white-hat hackers), Stakers, Token Owners, and a Decision Making Body detect, flag, freeze, and recover funds from fraudulent transactions. The product portfolio comprises Lossless Protocol (active exploit mitigation), Aegis (proactive threat monitoring), Vault Protection (whitelist and transfer-limit controls for treasuries), Token Minter (LERC-20 deployment), and Lossless Wrapped tokens (protection layers for existing ERC-20 tokens without requiring relaunch), all deployed across 8+ blockchain networks including Ethereum, Arbitrum, Polygon, Binance Smart Chain, Avalanche, Fantom, Harmony, Elysium, and Arthera, with 2,000+ protected contracts and 3+ billion transactions scanned.

The company earns revenue through performance-based fees charged only when the protocol successfully prevents financial loss — a model that aligns Lossless's incentives with protected projects but produces lumpy, event-driven cash flow. Distribution is global and self-serve: projects integrate via documentation, a JavaScript SDK, open-source GitHub repositories, and web dApps (platform.lossless.io, vault.lossless.io, minter.lossless.io, aegis.lossless.io). The go-to-market motion is community-led, drawing on Discord, Telegram, X, Medium, YouTube, and LinkedIn for developer relations and acquisition of white-hat hacker contributors. The firm is privately held; in May 2021 it raised $2.245 million in a private sale round led by DAO Maker with participation from multiple crypto-focused institutional investors, and it has subsequently commissioned security audits from CertiK, Hacken, and ABDK Consulting.

Name

Lossless

Legal name

Digital Assets Security Solutions OÜ

Website

https://lossless.io

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

11–50 employees

Short description

Lossless is a Tallinn-based Web3 security protocol providing blockchain exploit monitoring, prevention, and fund-recovery tools for DeFi projects and token issuers, built on a proprietary LERC-20 token standard and community-driven threat identification across 8+ blockchain networks.

Ownership category

akta.pro rank

Product category

Web3 Security & Exploit Mitigation

NAICS

Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320), Security Systems Services (except Locksmiths) (561621), Financial Transactions Processing, Reserve, and Clearinghouse Activities (52232)

SIC

Security & Commodity Brokers, Dealers, Exchanges & Services (6200)

akta.pro primary industry

Regulatory Reporting, Tax & Audit Trails (reconciliation, provenance) (FSAPAJAI)

akta.pro secondary industries

Interoperability & Cross-Chain Infrastructure (Bridges, Messaging, Atomic Swaps) (FSAGAMAI), Digital Asset Risk, Security & Audit Tooling (Smart Contract Audit, Threat Monitoring) (FSAGAMAJ), Compliance, Risk & RegTech for Tokenized Assets (KYC/AML, sanctions, travel rule, reporting) (FSAPAIAH), Governance, Controls & Policy Automation (GRC for Web3) (FSAPAJAG)

Keywords

• Web3 security protocol
• Exploit mitigation platform
• DeFi security solutions
• Smart contract protection
• Blockchain threat monitoring

Headquarters

HQ city

Tallinn

HQ country

Estonia

HQ region

Europe

Markets served

GTM type

B2B

Offering type

Software

Cost components

Technology or R&D, Personnel, Infrastructure, Marketing or Sales, Operations

Revenue model

1. Performance-based Security Fees: Lossless charges fees only on prevented financial loss. If no loss occurs, no fees are charged. This aligns incentives between Lossless and protected projects - the protocol only earns when it successfully prevents exploits.

Go-to-market motion1 record

Distribution channels2 records

Marketing channels9 records

Core offering

Lossless provides a Web3 security architecture and exploit mitigation platform built on its proprietary LERC-20 token standard, offering active monitoring, prevention, and recovery of stolen funds from blockchain exploits. Its core offerings include the Lossless Protocol (community-driven hack mitigation with automated transaction freezing), Aegis (real-time threat monitoring and smart contract defense), and Vault Protection (on-chain fail-safes with whitelist and transfer-limit controls) for DeFi projects and token issuers across 8+ blockchain networks.

Product overview

Lossless is a Web3 security platform offering a portfolio of interconnected products for blockchain transaction protection. The core offering consists of Lossless Protocol (for active exploit mitigation with community-driven monitoring), Aegis (for proactive threat monitoring and smart contract defense), and Vault Protection (for token contract fail-safes with whitelist and single limit rules). Additional tools include Token Minter (for deploying protected LERC-20 tokens) and Hack Explorer (for exploring hack incidents). The LERC-20 token standard serves as the underlying technology enabling all protections, while the Hack Mitigation Protocol coordinates Finders, Stakers, and a Decision Making Body to detect, report, and recover funds from fraudulent transactions.

Differentiator

Problem solved

Functional benefit

Brands

• Lossless Aegis: Proactive Web3 security product providing industry-leading threat monitoring and smart contract defence capabilities.
• Lossless Protocol
• Vault Protection
• Token Minter

Products and services

• Lossless Protocol Core platform for active exploit mitigation on blockchain transactions. It facilitates manual and automatic community-driven monitoring of suspicious on-chain activity, freezing malicious token transactions after being flagged for investigation. Built for DeFi projects and token issuers needing protection from hacks and fraudulent transactions.
• Aegis (Lossless Aegis) Proactive Web3 security solution providing real-time threat monitoring and smart contract defense capabilities, designed to prevent exploits before they happen. Targeted at DeFi projects with mission-critical contracts.
• Vault Protection On-chain protection for token contracts that allows setting specific protection rules for addresses, including whitelist (TreasuryProtectionStrategy) and single limit (LiquidityProtectionSingleLimitStrategy) functionality to prevent unauthorized token transfers. For token projects needing treasury and liquidity protection.
• Token Minter Tool for deploying tokens with built-in Lossless protection, enabling projects to create LERC-20 compliant tokens. For token issuers launching new tokens with security built in.
• Hack Explorer A public tool for exploring and viewing information about hack incidents and exploits in the DeFi space. Available on the platform.lossless.io interface.

Quantifiable outcome

• 2000+ protected contracts
• +2 more outcomes

Segments3 records

Ideal customer profiles2 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

AI capability1 record

Feature5 records

Partnerships

One partnership is on record.

• CertiKminorOthersCertiK conducted a comprehensive security audit of Lossless's core protocol, Vault protection, and LERC-20 smart contracts. The audit report is publicly available and demonstrates security due diligence.

Scale indicators4 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• BlockSec: Smart contract and DeFi security firm providing audits, monitoring, and exploit-blocking services — directly competes with Lossless in proactive threat prevention and post-exploit recovery.
• PeckShield: Blockchain security company offering smart contract auditing, on-chain threat monitoring, and incident response — directly comparable to Lossless's exploit detection and recovery mission.
• SlowMist: Blockchain security firm focused on smart contract audits, threat intelligence, and stolen fund recovery — overlaps directly with Lossless's Hack Mitigation Protocol and Aegis products.
• Hacken: Web3 cybersecurity auditor with bug bounty platform and token auditing services — also an investor and audit provider to Lossless, making it a direct competitor and ecosystem peer.
• Quantstamp: Provides smart contract security audits and automated security tools for DeFi protocols — comparable to Lossless in offering protocol-level protection services to Web3 projects.
• CertiK: Leading Web3 security firm providing smart contract audits, formal verification, and on-chain monitoring — direct competitor to Lossless across audits and threat monitoring, and a known audit provider of Lossless itself.
• OpenZeppelin: Provides smart contract security libraries, audit services, and Defender for monitoring DeFi protocols — comparable to Lossless Protocol and Aegis in providing security infrastructure for token projects.

Broad incumbents

• Trail of Bits: Established security research and smart contract audit firm — comparable to Lossless in providing high-end Web3 security services, though broader in scope beyond DeFi-specific exploit mitigation.
• Chainalysis: Blockchain analytics and compliance platform with incident response capabilities — broader incumbent offering overlapping tools for tracing and recovering stolen funds, relevant to Lossless's recovery mission.

Emerging players

• Forta: Decentralized monitoring network for smart contract threat detection — comparable to Lossless Aegis in providing real-time anomaly detection for DeFi protocols, though focused on infrastructure rather than recovery.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/losslessdefi
• GitHubgithub.com/Lossless-Cash
• YouTubeyoutube.com/c/LosslessDeFi
• LinkedInlinkedin.com/company/losslessdefi

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds2 records

Investors11 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Lossless